How employers can navigate rising health care costs

The prices we pay for care are on the rise. Here are a few tips to help employers navigate the changing landscape.

What’s driving rising health care costs today?

There’s no shortage of conversation about rising health care costs. Unfortunately, the discussion stops short of what employers can do about the steady, significant increases they’re facing. According to KFF’s 2025 Employer Health Benefits Survey, the average premium for family coverage has increased 24 percent over the past five years.¹ During that same period, workers’ wages grew by 28.6 percent and inflation increased 23.5 percent.²

The survey lists several contributing factors, including prescription spending, especially for new high‑cost medications; chronic disease prevalence; increased use of health care services; and hospital prices.³

Data alone won’t solve the problem, but it can help employers develop a strategy to keep coverage affordable while supporting employee health.

How employers can respond to increasing benefit costs

When you consider an insurance carrier, be sure to evaluate its structure. It can significantly influence plan affordability and the resources available to help manage costs. Take note of insurers that are part of an integrated health care system, like the one that connects UPMC Health Plan, UPMC, and the University of Pittsburgh Schools of the Health Sciences. Such a system allows providers and payers to collaborate on delivering high-quality care at low costs.

Partnering with an integrated health care system like ours allows employers to:

• Manage their company’s health care costs through flexible, affordable medical plans.
• Give employees access to a robust network that includes UPMC’s top-rated doctors and hospitals.⁴
• Support employees’ overall wellness with access to preventive screenings and other recommended health care services, behavioral health services, and 24/7 telehealth.
• Give employees peace of mind when they travel through access to global emergency assistance services.
• Offer an employee assistance program (EAP) with resources workers need to stay focused and productive. A robust EAP can connect employees to resources and services that help them achieve work-life balance; deal with family and relationship concerns; and cope with anxiety, depression, or drug/alcohol issues.

Another critical area to consider when selecting an insurer is the overall value of its offerings. When you choose UPMC Health Plan, you get quality, access, choice, and value for your company and your employees. Our plans can meet the needs of businesses of all sizes and across industries, and they include robust services for covered employees at no additional cost.

• Digital tools and telehealth: Having access to innovative digital tools can help employees understand their health and ways to improve it. Telehealth ensures that employees have 24/7 access to care and receive a rapid response to their health needs—no matter where they are.
• Spending accounts: There are many spending account options. These accounts can be an effective way to help contain health costs for your business and employees. For example, health care flexible spending accounts allow employees to use their tax-free savings to pay for qualified out-of-pocket health care expenses, such as pharmacy and office visit copayments. As an employer, you don’t pay payroll taxes on the funds your employees accumulate.
• Health coaching: Offering a health coaching program bolsters traditional benefits by supporting employees in achieving their wellness goals. We offer a variety of programs to help your employees make lifestyle changes and manage chronic conditions, such as diabetes, COPD, and asthma.
• Behavioral health support: Offering access to behavioral health tools, programs, and services is a crucial part of maintaining the overall well-being of your business. Our behavioral health coaching allows employees to get help from licensed professionals to address anxiety, depression, substance use disorders, and more.

With UPMC Health Plan, there’s a plan for every budget

It’s essential to understand what employees need and want when it comes to coverage, as well as how they use their benefits. A no-cost, anonymous online survey can help you gather insights, such as:

• How far your employees live from their preferred doctors. 
• Which plan features and benefits employees want.
• How employees’ current coverage is meeting their needs.

Once you have this information, you can use it to compare health plans. Your business size and employees’ locations can influence your decision. If you have a midsize business with one office and most of your employees live nearby and work onsite, a narrow network with extended network coverage for travel might make sense for you. Conversely, if you have a combination of onsite and out-of-state employees, you might need a plan with a national network.

Even if you think you know your employees’ needs, it’s a good idea to ask so you can evaluate your options based on possible changes to your structure, working arrangements, and current plan.

Connect with UPMC Health Plan

We can partner with you to find an affordable plan that meets your needs and those of your employees. All of our plans offer access to high-quality care to help your employees get or stay as healthy as possible.